Loading...
Resolution 2018-24I RESOLUTION NO. 2018-24 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF GILROY COMMUNITY FACILITIES DISTRICT NO. 2000-1 (HIGHWAY 152), AUTHORIZING THE ISSUANCE OF ITS SPECIAL TAX REFUNDING BONDS, SERIES 2018, IN A PRINCIPAL AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED NINE MILLION DOLLARS ($9,000,000), APPROVING A DEBT POLICY, AND APPROVING CERTAIN DOCUMENTS AND TAKING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH WHEREAS, the City Council of the City of Gilroy (the "City "), located in Santa Clara County, California (hereinafter sometimes referred to as the "legislative body of the District "), has heretofore undertaken proceedings to form City of Gilroy Community Facilities District No. 2000 -1 (Highway 152) (the "District ") pursuant to the terms and provisions of the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act "); and WHEREAS, the District has previously issued its Special Tax Bonds, Series 2002 (the "2002 Bonds ") and its Special Tax Bonds, Series 2006 (Improvement Area No. 1) (the "2006 Bonds "); and WHEREAS, the District desires to refund the 2002 Bonds and the 2006 Bonds through the issuance of bonds in an aggregate principal amount not to exceed $9,000,000 in one or more series designated as the "City of Gilroy Community Facilities District No. 2000 -1 (Highway 152) Special Tax Refunding Bonds, Series 2018" (the "Bonds "); and WHEREAS, the District solicited bids from banks for the purchase of the Bonds on a private placement basis; and WHEREAS, Banner Bank submitted a bid with the lowest interest rate; and WHEREAS, in order to affect the issuance of the Bonds, the legislative body of the District desires to enter into a Fiscal Agent Agreement, dated as of July 1, 2018, with MUFG Union Bank, N.A., as Fiscal Agent, in substantially the forms presented herewith; and WHEREAS, the legislative body of the District has determined in accordance with Section 53360.4 of the Code that a negotiated sale of the Bonds to Banner Bank will result in a lower overall cost to the District than a public sale; and WHEREAS, the legislative body of the District has determined that it is prudent in the management of its fiscal affairs to issue the Bonds; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY, ACTING AS THE LEGISLATIVE BODY OF THE DISTRICT, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: 1. Each of the above recitals is true and correct. 4822- 2637 - 9111.2 RESOLUTION NO. 2018-24 2. The District is authorized pursuant to the Act to issue the Bonds for purposes set forth herein and to take the necessary steps to refund the 2002 Bonds and the 2006 Bonds. 3. The issuance of the Bonds in an aggregate principal amount not to exceed $9,000,000 and an interest rate not to exceed 3.50% per annum, and the sale of the Bonds to Banner Bank, is hereby authorized with the exact principal amount to be determined by the official signing the Fiscal Agent Agreement as described below. The legislative body of the District hereby determines that it is prudent in the management of its fiscal affairs to issue the Bonds. The Bonds shall mature on the dates and pay interest at the rates set forth in the Fiscal Agent Agreement, which is hereby approved. The Bonds shall be governed by the terms and conditions of the Fiscal Agent Agreement presented at this meeting. The Fiscal Agent Agreement shall be executed by one or more of the Mayor, the City Administrator or the Finance Director of the City, or their designees (collectively, the "Authorized Officers ") substantially in the form presented at this meeting, with such additions thereto and changes therein as the officer or officers executing the same deem necessary in accordance with the limitations set forth in this Resolution. Approval of such changes shall be conclusively evidenced by the execution and delivery of the Fiscal Agent Agreement by one or more Authorized Officers. Capitalized terms used in this Resolution which are not defined herein have the meanings ascribed to them in the Fiscal Agent Agreement. 4. The Bonds shall be executed on behalf of the District by the manual or facsimile signature of the Mayor of the City and attested with the manual or facsimile signature of the City Clerk of the City. 5. The legislative body of the District hereby approves the Escrow Agreements presented at this meeting. The Escrow Agreements shall be executed by one or more of the Authorized Officers substantially in the forms presented at this meeting, with such additions thereto and changes therein as the officer or officers executing the same deem necessary in accordance with the limitations set forth in this Resolution. Approval of such changes shall be conclusively evidenced by the execution and delivery of the Escrow Agreements by one or more Authorized Officers. 6. NHA Advisors, Nixon Peabody LLP and MUFG Union Bank, N.A. are hereby appointed to act as Municipal Advisor, Bond Counsel and Escrow Agent/Fiscal Agent, respectively. 7. The attached Debt Policy is hereby approved. 8. The covenants set forth in the Fiscal Agent Agreement to be executed in accordance with Section 3 above are hereby approved, shall be deemed to be covenants of the City Council in its capacity as the legislative body of the District and shall be complied with by the District and its officers. 9. In accordance with the requirements of Section 53345.8 of the Act, the legislative body of the District hereby determines that the value of the real property in the District subject to the special tax to pay debt service on the Bonds is at least three times the principal amount of the RESOLUTION NO. 2018-24 Bonds and the principal amount of all other bonds outstanding that are secured by a special tax levied pursuant to the Act or a special assessment levied on property within the District. 10. The Mayor and other councilmembers of the legislative body of the District, the Authorized Officers and the other officers and staff of the City and the District responsible for the fiscal affairs of the District are hereby authorized and directed to take any actions, and execute and deliver any and all documents as are necessary to accomplish the issuance, sale and delivery of the Bonds in accordance with the provisions of this Resolution and the fulfillment of the purposes of the Bonds as described in the Fiscal Agent Agreement. In the event that the Mayor of the legislative body of the District is unavailable to sign any document authorized for execution herein, any other member of the legislative body of the District, or his designee, may sign such document. Any document authorized herein to be signed by the City Clerk of the legislative body of the District may be signed by a duly - appointed deputy city clerk. 11. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED this 2 "d day of July 2018 by the following roll call vote: AYES: COUNCILMEMBERS: BLANKLEY, BRACCO, HARNEY, LEROE- MUNOZ, TOVAR, TUCKER and VELASCO NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE T: Freels, City Clerk RESOLUTION NO. 2018-24 EXHIBIT A GOVERNMENT CODE SECTION 5852.1 DISCLOSURE The following information consists of estimates that have been provided by the City's Municipal Advisor, which has been represented by the Municipal Advisor to have been provided in good faith: (A) True Interest Cost of the Bonds: 3.3994% (B) Finance Charge of the Bonds (Sum of all fees /charges paid to third parties): $200,000 (C) Net Proceeds to be Received for the sale of the Bonds (net of finance charges, reserves and capitalized interest, if any): $10,447,130 (D) Total Payment Amount Through Maturity on the 2018 Bonds: $10,586,619 The foregoing estimates constitute good faith estimates only. The principal amount of the Bonds, the true interest cost of the Bonds, the finance charges thereof, the amount of proceeds received therefrom and total payment amount with respect thereto may differ from such good faith estimates due to (a) the actual date of the sale of the Bonds being different than the date assumed for purposes of such estimates, (b) the actual principal amount of Bonds sold being different from the estimated amount used for purposes of such estimates, (c) the actual amortization of the Bonds being different than the amortization assumed for purposes of such estimates, (d) the actual market interest rates at the time of sale of the Bonds being different than those estimated for purposes of such estimates, (e) other market conditions, (f) federal tax law advice from the City's bond counsel or (g) alterations in the City's fmancing plan, or a combination of such factors. The actual date of sale of the Bonds and the actual principal amount of Bonds sold will be determined by the City based on the timing of the need for proceeds of the Bonds and other factors. The actual interest rates borne by the Bonds will depend on market interest rates at the time of sale thereof. The actual amortization of the Bonds will also depend, in part, on market interest rates at the time of sale thereof. Market interest rates are affected by economic and other factors beyond the control of the City. RESOLUTION NO. 2018-24 I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 2018 -24 is an original resolution, or true and correct copy of a city Resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 2nd day of July, 2018, at which meeting a quorum was present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this P day o�f�July, 2018. City Clerk of the City of Gilroy (Seal)